RCom hits 52-week high on confirmation of stake sale in Reliance Globalcom

Samena Capital, in a proposed consortium with certain other global PE funds, is in advance stage to acquire Reliance Globalcom.

Reliance Communication (RCom) has rallied 11% to Rs 95.50, also its 52-week high on NSE, after Anil Ambani promoted telecom services firm confirms that private equity (PE) funds consortium is in advance talks to acquire Reliance Globalcom, a global communications services business unit.

The intended time line for completion is end of May 2013.

“We note recent reports in the press and confirm that Samena Capital, in a proposed Consortium with certain other global PE funds, is at an advanced stage of the process of due diligence and completion of definitive documents in relation to the acquisition of Reliance Globalcom Ltd., our global communications services business unit,” RCom said in a BSE filing.

At this point, there can be no certainty that this will lead to a transaction. A further announcement will be made in due course, if and when appropriate, it added.

RCOM and Samena Capital are no longer in discussions with Batelco for the purposes of the above transaction, the company said.

The stake sale is expected to be used by RCom to lower its debt burden which stood at around Rs 37,000 crore as on December 31, 2012.

The stock opened at Rs 87.10 and hit a low of Rs 84.80 in morning trades on NSE. A combined 51.49 million shares have changed hands on the counter till 1454 hours on NSE and BSE.